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Corn settles higher

05/04/2011 @ 9:35am

CHICAGO, Illinois (Agriculture.com)--The CME Group corn market used inclement planting weather forecasts to close higher, wheat and soybeans tumbled on a broad commodity sell-off Wednesday.

The July corn futures settled 5 3/4 cents higher at $7.29 1/2. The July soybean contract settled 11 3/4 cents lower at $13.52. The July wheat futures closed 21 1/4 cents lower at $7.72. The July soybean meal futures settled $2.40 per short ton lower at $352.60. The July soyoil futures closed $0.54 lower at $57.17.

In the outside markets, the NYMEX crude oil is $1.84 per barrel lower, the dollar is lower and the Dow Jones Industrials are down 79 points.

Why are the markets mostly lower? Well, it depends upon whom you talk to. Some say it's a result of pure liquidation. 

"The stock market has had a 78% retracement from it's all-time high," one CME Group floor trader, requesting anonymity, says. 

The govt's stimulus programs have faded, he says. Fed Chairman Ben Bernanke told reporters in his news conference that Quantitative Easing-2 will end in June. Separately, world government's continue to tighten easy credit requirements. "And people are just pulling money out of the market. As a result, the grain and soybean markets feel that ripple affect. This lower, weaker market has nothing to do with fundamentals, it's all about the macroeconomic factors," one floor trader says.

At the same time, another trader says the corn market is finding strength from a delayed planting season.


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